China enters public-private partnership foreign investment era

%3CP%3E%3CFONT%20face%3DVerdana%3EBy%20Zhang%20Monan%2C%20Associate%20Researcher%2C%20China%20Center%20for%20International%20Economic%20Exchanges%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EBeijing%20welcomes%20the%202.0%20foreign%20investment%20era%2C%20as%20the%20world%u2019s%20largest%20emerging%20economy%20announces%20the%20launch%20of%20China%u2019s%20National%20Development%20and%20Reform%20Commission%20to%20promote%20a%201RMB%20trillion%20market%20of%20new%20Public%20Private%20Partnership%20%28PPP%29%20projects%20to%20reorient%20relations%20between%20government%20and%20the%20market%20along%20with%20expanding%20public%20services.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%20align%3Dcenter%3E%3CIMG%20border%3D0%20src%3D%22/new_maoyi_en/cn/admin/news/NewsFile/-1/201561163733436.jpg%22%20width%3D500%3E%3C/P%3E%3CFONT%20face%3DVerdana%3E%0D%0A%3CP%20align%3Dcenter%3E%3CBR%3EChina%20enters%20public-private%20partnership%20foreign%20investment%20era%3C/P%3E%0D%0A%3CP%3EPPP%2C%20public%20and%20private%20sector%20partnership%2C%20refers%20to%20the%20government%2C%20earnings%20and%20non-profit%20enterprises%20engaging%20in%20mutual%20cooperation%20patterns%20for%20certain%20projects.%20The%20model%20was%20introduced%20in%20the%20early%201990s%20in%20the%20United%20Kingdom%20public%20service%20field.%20%3C/P%3E%0D%0A%3CP%3EPPP%u2019s%20core%20philosophy%20aims%20to%20provide%20better%20quality%20public%20services%20through%20a%20wide%20range%20of%20social%20capital%20and%20using%20the%20expertise%20of%20private%20enterprises.%20According%20to%20World%20Bank%20statistics%2C%20PPP%20has%20concentrated%20in%20such%20services%20as%20rail%20transport%2C%20municipal%20infrastructure%2C%20ecological%20and%20environmental%20protection%2C%20clean%20energy%2C%20and%20health%20services.%20According%20to%20statistics%20of%20the%20Public%20Works%20Financing%20%28PWF%29%2C%20a%20global%20PPP%20researcher%2C%20since%201985-2011%20the%20global%20infrastructure%20nominal%20value%20of%20PPP%20has%20reached%20%24775.1%20billion%20to%20ease%20pressures%20on%20the%20expenses%20of%20public%20construction%2C%20while%20enhancing%20public%20management%20efficiency.%20%3C/P%3E%0D%0A%3CP%3EChina%u2019s%20capital%20total%20stock%20and%20per%20capita%20capital%20stock%20lag%20behind%20developed%20countries%2C%20but%20with%20room%20for%20upgrades.%20The%20overall%20increase%20of%20investments%20would%20boost%20public%20goods%20and%20services%2C%20such%20as%20education%2C%20medical%20services%2C%20pension%2C%20social%20security%20and%20other%20public%20facilities%20investment%2C%20as%20well%20as%20investments%20in%20urban%20and%20rural%20infrastructure%2C%20such%20as%20in%20intercity%20transport%2C%20road%20transport%2C%20urban%20underground%20pipeline%20network%2C%20low-income%20housing%20projects%2C%20energy%20conservation%2C%20environmental%20protection%2C%20agriculture%20and%20water%20conservancy%2C%20the%20Midwest%20roads%20and%20railway%20building.%20%3C/P%3E%0D%0A%3CP%3EJudging%20from%20global%20development%2C%20the%20UK%2C%20Australia%20and%20other%20developed%20countries%20have%20a%20more%20sophisticated%20PPP%20mode%20and%20larger%20amount%20of%20usage.%20With%20more%20regulations%20and%20transparency%2C%20the%20operations%20of%20PPP%20projects%20in%20developed%20countries%20appear%20more%20normative.%20More%20foreign%20investments%20entering%20China%u2019s%20PPP%20market%20could%20bring%20a%20positive%20impact%20on%20public%20services.%20%3C/P%3E%0D%0A%3CP%3EBeijing%20is%20promoting%20the%20socialization%20of%20public%20services%20that%20were%20proposed%20in%20the%20Third%20Plenary%20Session%20of%20the%2018th%20Central%20Committee%20of%20the%20Communist%20Party%20of%20China%20that%20explores%20access%20to%20the%20pre-establishment%20of%20national%20treatment%20for%20foreign%20investment%20and%20a%20negative%20list%20management%20for%20foreign%20capital%20entering%20China%u2019s%20PPP%20market%20space%2C%20which%20will%20be%20expanded%20further.%20Before%202013%2C%20foreign%20management%20in%20China%20had%20adopted%20a%20post-establishment%20national%20treatment%20and%20positive%20list%20mode%2C%20which%20were%20following%20foreign%20investment%20industry%20guidelines.%20Such%20foreign-funded%20projects%20have%20been%20divided%20into%20the%20categories%20of%20encouraging%2C%20permitting%2C%20or%20restricting%20and%20prohibiting.%20%3C/P%3E%0D%0A%3CP%3EAfterwards%2C%20China%20promoted%20reform%20through%20opening-up%2C%20relaxed%20foreign%20investment%20access%2C%20improved%20service%20field%20and%20investment%20liberalization.%20Changing%20foreign%20investment%20projects%20from%20an%20approval%20system%20to%20an%20on-file%20system.%20Changing%20foreign%20investment%20enterprise%20contracts%20and%20written%20rules%20to%20record%20management%2C%20building%20a%20more%20open%2C%20fair%20and%20non-discriminatory%20policy%20system%2C%20which%20is%20bound%20to%20enjoy%20a%20far-reaching%20impact%20to%20promote%20the%20integration%20of%20all%20types%20of%20capital%20with%20their%20complementary%20advantages%2C%20accelerate%20the%20transformation%20of%20the%20Chinese%20government%20to%20an%20effective%20service%20government%2C%20and%20give%20full%20play%20to%20the%20decisive%20role%20of%20market%20allocation%20resources.%20%3C/P%3E%0D%0A%3CP%3EThis%20model%20could%20usher%20in%20new%20development%20opportunities.%20Currently%2C%20China%u2019s%20economic%20%u201Cinvest%20cost%20depression%u201D%20effect%2C%20formed%20by%20demographic%20dividends%2C%20land%20formation%20costs%20and%20environmental%20costs%2C%20has%20gradually%20been%20fading.%20Excessive%20reliance%20on%20increasing%20investment%20in%20labor%2C%20capital%20and%20other%20factors%20of%20production%20of%20growth%20does%20not%20appear%20to%20be%20sustainable.%20The%20investment%20in%20human%20capital%2C%20technological%20progress%2C%20innovation%20and%20research%20and%20development%20should%20be%20increased%20to%20attract%20more%20foreign%20investment%20as%20well.%20%3C/P%3E%0D%0A%3CP%3EThe%20recently%20announced%20Beijing%20Service%20Industry%20Expanding%20Opening-up%20and%20Comprehensive%20Pilot%20Overall%20Program%20has%20encouraged%20foreign%20investment%20to%20enter%20the%20industries%20of%20software%20and%20information%20services%2C%20integrated%20circuit%20design%20and%20other%20emerging%20industries%2C%20promote%20cloud%20computing%2C%20Internet%20of%20Things%2C%20mobile%20internet%20and%20Next-Generation%20Internet%20service%20modes%20and%20business%20modes%20innovation.%20Numerous%20multinational%20corporations%20have%20already%20set%20up%20research%20and%20development%20centers%2C%20offshore%20service%20centers%20and%20business%20headquarters%20in%20Beijing.%20Through%20talent%20introduction%2C%20technology%20transfers%20and%20cooperative%20development%2C%20China%20is%20moving%20into%20a%20new%20age%20to%20attract%20foreign%20investment.%3C/P%3E%0D%0A%3CP%3E%3CBR%3E%28CCTV.com%29%3C/FONT%3E%3C/P%3E